Data Source: Thomson Reuters
Despite mass pessimism on Europe, earnings estimates are more sanguine for the Stoxx 600 than the S&P 500 in the US. Q1 estimates for the Stoxx 600 are -1.6% year on year compared the the S&P 500 at -3.9% year on year.
The implication is that if the US can beat expectations and come in flat, European earnings could wind up positive by one or two percent+. This is not something the market has been counting on (particularly in Europe) and could be constructive for the region – all other factors held constant.
